AFMI Weekly Insight February 23rd 2018

23 February 2018


  • Despite its recent downgrade to B2 from B1 by Moody’s, Kenya managed to raise USD 2 bn at competitive yields this week. The country received USD 14 bn worth of bids. It raised USD 1 bn in a 10Y note with a yield of 7.25% and another USD 1 bn with a yield of 8.25% in a 30Y note. The final yield reflected a tightening of the initial pricing by 30bps.
    (Source: Reuters)
  • In Uganda, a 15Y and a 2Y bonds were auctioned at the Central Bank where a total of UGX 200 billion (USD 55.02million) worth of debt was on offer. The weighted average yield on the 2Y bond rose to 11.049% from 10.911% at its last sale on December. The rate on the 15Y bond also rose to 14.432% from 14.343% at the last auction in November.
    (Source: Reuters)
  • Ghana is planning to issue a 6th Eurobond by June according to its Finance Minister. Authorities met with Asian investors in Singapore and Hong Kong last week. The government is also looking to issue a green bond. The Eurobond was originally envisaged to raise USD 1bn in the 2018 budget.
    (Source: Reuters)
  • The Bank of Zambia sold ZMW 950 million bn in Treasury bills.  87% of the appetite was for the 1Y paper paying a yield of 16.5%, 50bps higher than the previous auction 2 weeks ago. Minimal interest was shown in the 3M and 9M tenors whose yields were 9.7999% and 9.3562% respectively.
    (source: Zambia Business Times)


Source: Bloomberg®

AfDB/AFMISM Bloomberg® African Bond Index (ABABI) 25% Capped

The ABABI 25% Capped is a rule - based weighted composite index of local Sovereign Indices (South Africa, Egypt, Nigeria, Kenya, Namibia, Botswana, Ghana, and Zambia).

County percentage composition to the index is capped at 25%.

To be included in the index, a security must have at least 1 year remaining to maturity. Source: Bloomberg®

Bloomberg Commodity Index

Source:  Bloomberg®